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Service Contract Providers Page Finance Division Kimberly Johnson, kimberly.johnson@arkansas.gov |
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Frequently
Asked Questions What is a Service
Contract? A "Service Contract," is
sometimes referred to as an extended service plan or extended warranty, gives
purchasers of consumer electronics, appliances, motor vehicles, homes and
home systems, the option to protect their products and investments beyond the
terms provided by the manufacturer or seller. Service Contracts often provide
benefits not otherwise available in a manufacturer's or seller's warranty.
Service Contracts offer flexible benefits that can include product repairs,
complete product replacement, technical support, and emergency repairs and
service. In addition to product and purchase protection, Service Contracts
provide consumers with convenience, time savings, and peace of mind. How does a Service
Contract differ from a warranty? Unlike a Service Contract for which a consumer pays a
separate charge, a manufacturer's warranty is included in the purchase price
of a product. You don't have to decide whether to "buy" it or not -
it simply comes with your product. Although Service Contracts are sold by
manufacturers, as well as other kinds of companies, they differ from a
manufacturer's warranty. Manufacturers' warranties generally have limited
product protection and are effective for a limited period of time, some as
short as 90 days, depending on the type of product covered. Service Contracts
are designed to provide protection after a manufacturer's warranty expires
but they can also overlap by providing additional benefits generally not
included in a manufacturer's warranty. What is the Service Contract
Industry Council? The Service
Contract Industry Council (SCIC) is a national non-profit trade association
that works with lawmakers across the country to develop fair and uniform
regulation to protect consumers, and is an advocate for the regulation of the
Service Contract industry. |
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